Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Effective Date of Previously-Approved Amendments to Rule G-21 and New Rule G-40, 1525-1527 [2019-00802]

Download as PDF Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Notices registration closes. Participation in the public comment period is governed by 39 CFR 232.1(n). CONTACT PERSON FOR MORE INFORMATION: Acting Secretary of the Board, U.S. Postal Service, 475 L’Enfant Plaza SW, Washington, DC 20260–1000. Telephone: (202) 268–4800. Michael J. Elston, Acting Secretary. [FR Doc. 2019–01105 Filed 1–31–19; 4:15 pm] BILLING CODE 7710–12–P 2019. The Commission is extending this 45-day time period. The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,5 designates March 19, 2019, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR–NASDAQ–2018–079). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.6 Eduardo A. Aleman, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85000; File No. SR– NASDAQ–2018–079] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend Nasdaq Rules 5705 and 5710 To Adopt a Disclosure Requirement for Certain Securities [FR Doc. 2019–00803 Filed 2–1–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84982; File No. SR–FINRA– 2018–039] amozie on DSK3GDR082PROD with NOTICES1 January 29, 2019. On November 29, 2018, The Nasdaq Stock Market LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change with respect to amend Nasdaq Rules 5705 and 5710 to adopt a disclosure requirement for certain securities. The proposed rule change was published for comment in the Federal Register on December 19, 2018.3 The Commission has received no comment letters regarding the proposed rule change. Section 19(b)(2) of the Act 4 provides that, within 45 days of publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding, or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day after publication of the notice for this proposed rule change is February 2, Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change Relating to FINRA Rule 4570 (Custodian of Books and Records) January 11, 2019. On November 15, 2018, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change relating to FINRA Rule 4570 (Custodian of Books and Records). The proposed rule change was published for comment in the Federal Register on November 30, 2018.3 The Commission has received no comment letters regarding the proposed rule change. Section 19(b)(2) of the Act4 provides that, within 45 days of publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it find such longer period to be appropriate and publishes its reasons for so finding, or as to which the self5 Id. 6 17 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 84812 (December 13, 2018), 83 FR 65184. 4 15 U.S.C. 78s(b)(2). VerDate Sep<11>2014 18:21 Feb 01, 2019 Jkt 247001 CFR 200.30–3(a)(31). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 84646 (November 26, 2018), 83 FR 61689. 4 15 U.S.C. 78s(b)(2). 1 15 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 1525 regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day after publication of the notice for this proposed rule change is January 14, 2019. The Commission is extending this 45-day time period. The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.5 Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 designates February 28, 2019, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR–FINRA–2018– 39). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Brent J. Fields, Secretary. [FR Doc. 2019–00805 Filed 2–1–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84999; File No. SR–MSRB– 2019–01] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Effective Date of Previously-Approved Amendments to Rule G–21 and New Rule G–40 January 29, 2019. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 28, 2019 the Municipal Securities Rulemaking Board (‘‘MSRB’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the MSRB. The Commission is publishing this notice to 5 We also note that by letter dated December 27, 2018, FINRA consented to extending to February 28, 2019 the time period for Commission action on SR–FINRA–2018–039. See https://www.finra.org/ sites/default/f2018-39-Extension-1.pdf. 6 Id. 7 17 CFR 200.30–3(a)(31). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. E:\FR\FM\04FEN1.SGM 04FEN1 1526 Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Notices solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The MSRB filed with the Commission a proposed rule change to extend the February 7, 2019, effective date of previously-approved amendments to Rule G–21, on advertising by brokers, dealers or municipal securities dealers, and new Rule G–40, on advertising by municipal advisors (‘‘proposed rule change’’).3 The MSRB has designated the proposed rule change for immediate effectiveness. The new effective date of the amendments to Rule G–21 and new Rule G–40 will be announced in an MSRB Notice to be published on the MSRB’s website no later than 60 days following publication of the proposed rule change in the Federal Register. The effective date to be announced will be not later than 180 days following publication of the MSRB Notice. The text of the proposed rule change is available on the MSRB’s website at www.msrb.org/Rules-andInterpretations/SEC-Filings/2019Filings.aspx, at the MSRB’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the MSRB included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The MSRB has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. amozie on DSK3GDR082PROD with NOTICES1 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The MSRB proposes to extend the effective date of amendments to Rule G– 21 and new Rule G–40 (collectively ‘‘advertising rules’’). On May 7, 2018, the Commission approved the amendments with an effective date of February 7, 2019.4 3 See Release No. 34–83177 (May 7, 2018); 83 FR 21794 (May 10, 2018) (File No. SR–MSRB–2018– 01). The SEC also approved a technical amendment to Rule G–42, on duties of non-solicitor municipal advisors. The compliance date for this amendment to Rule G–42 would remain February 7, 2019. 4 Id. VerDate Sep<11>2014 18:21 Feb 01, 2019 Jkt 247001 The amendments to Rule G–21 (i) provide more specific content standards for advertisements by brokers, dealers or municipal securities dealers (collectively, dealers), (ii) revise the rule’s general standards for advertisements, and (iii) reconcile analogous provisions relating to the definition of ‘‘form letter’’ in Rule G–21 with the definition of correspondence in FINRA Rule 2210, on communications. The amendments also include a technical amendment in paragraph (e) to streamline the rule. New Rule G–40 includes general provisions, addresses professional advertisements by municipal advisors, and requires principal approval, in writing, for advertisements by municipal advisors before their first use. The general provisions (i) define key terms, including the term ‘‘advertisement,’’ (ii) provide content standards, such as the requirement that an advertisement be based on the principles of fair dealing and good faith and be fair and balanced, and (iii) provide general standards for advertisements, namely that a municipal advisor shall not publish or disseminate an advertisement that the municipal advisor knows or has reason to know contains any untrue statement of material fact or is otherwise false or misleading. In setting an effective date of February 7, 2019, the MSRB was seeking to provide dealers and municipal advisors sufficient time to establish and implement effective processes and procedures to comply with the advertising rules. Consistent with that intent, the MSRB planned to provide guidance relating to: A municipal advisor’s use of case studies and municipal advisory client lists; Rule G– 40’s content standards; and the use of social media.5 The MSRB is seeking to extend the effective date of the amendment to Rule G–21 and new Rule G–40 because additional time is needed to finalize its initial guidance and any related rule changes concerning the use of social media under MSRB advertising rules and, subsequently, allow dealers and municipal advisors to establish and implement effective policies and procedures for compliance with the advertising rules. Accordingly, the MSRB submits this proposed rule change to extend the effective date of the amendments to Rule G–21 and new Rule G–40. 5 See Letter from Pamela K. Ellis, Associate General Counsel, MSRB, dated April 30, 2018, available at https://msrb.org/∼/media/Files/SECFilings/2018/MSRB-2018-01%20MSRB%20Letter %20to%20SEC.ashx?. PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 2. Statutory Basis The MSRB believes that the proposed rule change is consistent with Section 15B(b)(2)(C) of the Act,6 which provides that the MSRB’s rules shall: be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities and municipal financial products, to remove impediments to and perfect the mechanism of a free and open market in municipal securities and municipal financial products, and, in general, to protect investors, municipal entities, obligated persons, and the public interest. The proposed rule change does not alter any rule language but extends the effective date of the amendments to Rule G–21 and new Rule G–40, which were previously approved by the Commission. The MSRB believes that by extending the effective date until after the guidance concerning the use of social media under MSRB advertising rules is finalized, dealers and municipal advisors will be afforded the time necessary to develop effective compliance procedures. Therefore, the proposed rule change will promote effective compliance with MSRB advertising rules and help prevent fraudulent and manipulative practices, promote just and equitable principles of trade, and protect investors, municipal entities, obligated persons and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition Section 15B(b)(2)(C) of the Act 7 requires that MSRB rules be designed not to impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The MSRB does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the Act. The proposed rule change will not alter any rule language and will, instead, only extend the effective date of the amendments to Rule G–21 and new Rule G–40. Additionally, Section 15B(b)(2)(L)(iv) of the Act, requires that MSRB rules not impose a regulatory burden on small municipal advisors that is not necessary or appropriate in the public interest and for the protection of investors, municipal entities, and obligated persons, provided that there is robust 6 15 U.S.C. 78o–4(b)(2)(C). 7 Id. E:\FR\FM\04FEN1.SGM 04FEN1 Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Notices protection of investors against fraud.8 The MSRB believes that the proposed rule change is consistent with Section 15B(b)(2)(L)(iv) of the Act in that, while the proposed rule change would affect all municipal advisors, including small municipal advisors, any regulatory burden that results is necessary and appropriate in order to promote regulatory consistency of advertising standards. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Pursuant to Section 19(b)(3)(A) 9 of the Act and Rule 19b–4(f)(6) 10 thereunder, the MSRB has designated the proposed rule change as one that effects a change that: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate. A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative until 30 days after the date of filing.11 However, Rule 19b– 4(f)(6)(iii) 12 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.13 The MSRB has requested that the Commission designate the proposed rule change operative upon filing,14 as specified in Rule 19b–4(f)(6)(iii),15 which would make the proposed rule change operative on January 28, 2019. The MSRB notes that the proposed rule change does not contain any amendments to the text of MSRB rules but extends the effective date of the amendments to Rule G–21 and new 8 15 U.S.C. 78o–4(b)(2)(L)(iv). U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(6). 11 Id. 12 17 CFR 240.19b–4(f)(6)(iii). 13 In addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory organization to give the Commission written notice of its intent to file a proposed rule change, along with a brief description and text of such proposed rule change, at least five business days prior to the date of filing, or such shorter time as designated by the Commission. The Commission has designated a shorter time for delivery of such written notice. 14 See SR–MSRB–2018–10. 15 17 CFR 240.19b–4(f)(6)(iii). amozie on DSK3GDR082PROD with NOTICES1 9 15 VerDate Sep<11>2014 17:21 Feb 01, 2019 Jkt 247001 Rule G–40, which were previously approved by the Commission. The MSRB believes that by extending the effective date until after the guidance concerning the use of social media under MSRB advertising rules is finalized, dealers and municipal advisors will be afforded the time necessary to develop effective compliance procedures. Further, the MSRB has stated that, in light of a 30day operative period that would conclude after the original effective date of February 7, 2019, an earlier operative date would provide regulatory certainty to dealers and municipal advisors that the effective date for compliance with the amendments to Rule G–21 and new Rule G–40 is extended. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The proposed rule change will help promote effective compliance with the amendments to Rule G–21 and new Rule G–40. Waiver of the 30-day operative period will provide certainty to dealers and municipal advisors that the effective date for compliance with the amendments to Rule G–21 and new Rule G–40 is extended in advance of February 7, 2019 and avoid confusion in the market. Accordingly, the Commission hereby waives the 30-day operative delay specified in Rule 19b– 4(f)(6)(iii) and designates the proposed rule change to be operative upon filing.16 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments 16 For the purpose of waiving the 30-day operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). Frm 00106 Fmt 4703 • Send an email to rule-comments@ sec.gov. Please include File Number SR– MSRB–2019–01 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. All submissions should refer to File Number SR–MSRB–2019–01. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the MSRB. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–MSRB–2019–01 and should be submitted on or before February 25, 2019. For the Commission, pursuant to delegated authority.17 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–00802 Filed 2–1–19; 8:45 am] BILLING CODE P DEPARTMENT OF STATE • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or PO 00000 1527 Sfmt 4703 [Public Notice: 10663] Notice of Public Meeting; Correction Department of State. Notice; correction. AGENCY: ACTION: 17 17 E:\FR\FM\04FEN1.SGM CFR 200.30–3(a)(12). 04FEN1

Agencies

[Federal Register Volume 84, Number 23 (Monday, February 4, 2019)]
[Notices]
[Pages 1525-1527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00802]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84999; File No. SR-MSRB-2019-01]


Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change To Extend the Effective Date of Previously-Approved Amendments 
to Rule G-21 and New Rule G-40

January 29, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on January 28, 2019 the Municipal Securities Rulemaking Board 
(``MSRB'') filed with the Securities and Exchange Commission (``SEC'' 
or ``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the MSRB. The Commission is 
publishing this notice to

[[Page 1526]]

solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB filed with the Commission a proposed rule change to extend 
the February 7, 2019, effective date of previously-approved amendments 
to Rule G-21, on advertising by brokers, dealers or municipal 
securities dealers, and new Rule G-40, on advertising by municipal 
advisors (``proposed rule change'').\3\ The MSRB has designated the 
proposed rule change for immediate effectiveness. The new effective 
date of the amendments to Rule G-21 and new Rule G-40 will be announced 
in an MSRB Notice to be published on the MSRB's website no later than 
60 days following publication of the proposed rule change in the 
Federal Register. The effective date to be announced will be not later 
than 180 days following publication of the MSRB Notice.
---------------------------------------------------------------------------

    \3\ See Release No. 34-83177 (May 7, 2018); 83 FR 21794 (May 10, 
2018) (File No. SR-MSRB-2018-01). The SEC also approved a technical 
amendment to Rule G-42, on duties of non-solicitor municipal 
advisors. The compliance date for this amendment to Rule G-42 would 
remain February 7, 2019.
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the MSRB's 
website at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2019-Filings.aspx, at the MSRB's principal office, and at the Commission's 
Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the MSRB included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The MSRB has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The MSRB proposes to extend the effective date of amendments to 
Rule G-21 and new Rule G-40 (collectively ``advertising rules''). On 
May 7, 2018, the Commission approved the amendments with an effective 
date of February 7, 2019.\4\
---------------------------------------------------------------------------

    \4\ Id.
---------------------------------------------------------------------------

    The amendments to Rule G-21 (i) provide more specific content 
standards for advertisements by brokers, dealers or municipal 
securities dealers (collectively, dealers), (ii) revise the rule's 
general standards for advertisements, and (iii) reconcile analogous 
provisions relating to the definition of ``form letter'' in Rule G-21 
with the definition of correspondence in FINRA Rule 2210, on 
communications. The amendments also include a technical amendment in 
paragraph (e) to streamline the rule.
    New Rule G-40 includes general provisions, addresses professional 
advertisements by municipal advisors, and requires principal approval, 
in writing, for advertisements by municipal advisors before their first 
use. The general provisions (i) define key terms, including the term 
``advertisement,'' (ii) provide content standards, such as the 
requirement that an advertisement be based on the principles of fair 
dealing and good faith and be fair and balanced, and (iii) provide 
general standards for advertisements, namely that a municipal advisor 
shall not publish or disseminate an advertisement that the municipal 
advisor knows or has reason to know contains any untrue statement of 
material fact or is otherwise false or misleading.
    In setting an effective date of February 7, 2019, the MSRB was 
seeking to provide dealers and municipal advisors sufficient time to 
establish and implement effective processes and procedures to comply 
with the advertising rules. Consistent with that intent, the MSRB 
planned to provide guidance relating to: A municipal advisor's use of 
case studies and municipal advisory client lists; Rule G-40's content 
standards; and the use of social media.\5\ The MSRB is seeking to 
extend the effective date of the amendment to Rule G-21 and new Rule G-
40 because additional time is needed to finalize its initial guidance 
and any related rule changes concerning the use of social media under 
MSRB advertising rules and, subsequently, allow dealers and municipal 
advisors to establish and implement effective policies and procedures 
for compliance with the advertising rules.
---------------------------------------------------------------------------

    \5\ See Letter from Pamela K. Ellis, Associate General Counsel, 
MSRB, dated April 30, 2018, available at https://msrb.org/~/media/
Files/SEC-Filings/2018/MSRB-2018-
01%20MSRB%20Letter%20to%20SEC.ashx?.
---------------------------------------------------------------------------

    Accordingly, the MSRB submits this proposed rule change to extend 
the effective date of the amendments to Rule G-21 and new Rule G-40.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
Section 15B(b)(2)(C) of the Act,\6\ which provides that the MSRB's 
rules shall:
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78o-4(b)(2)(C).

be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect 
to, and facilitating transactions in municipal securities and 
municipal financial products, to remove impediments to and perfect 
the mechanism of a free and open market in municipal securities and 
municipal financial products, and, in general, to protect investors, 
---------------------------------------------------------------------------
municipal entities, obligated persons, and the public interest.

    The proposed rule change does not alter any rule language but 
extends the effective date of the amendments to Rule G-21 and new Rule 
G-40, which were previously approved by the Commission. The MSRB 
believes that by extending the effective date until after the guidance 
concerning the use of social media under MSRB advertising rules is 
finalized, dealers and municipal advisors will be afforded the time 
necessary to develop effective compliance procedures. Therefore, the 
proposed rule change will promote effective compliance with MSRB 
advertising rules and help prevent fraudulent and manipulative 
practices, promote just and equitable principles of trade, and protect 
investors, municipal entities, obligated persons and the public 
interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    Section 15B(b)(2)(C) of the Act \7\ requires that MSRB rules be 
designed not to impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The MSRB does 
not believe that the proposed rule change will impose any burden on 
competition not necessary or appropriate in furtherance of the Act. The 
proposed rule change will not alter any rule language and will, 
instead, only extend the effective date of the amendments to Rule G-21 
and new Rule G-40.
---------------------------------------------------------------------------

    \7\ Id.
---------------------------------------------------------------------------

    Additionally, Section 15B(b)(2)(L)(iv) of the Act, requires that 
MSRB rules not impose a regulatory burden on small municipal advisors 
that is not necessary or appropriate in the public interest and for the 
protection of investors, municipal entities, and obligated persons, 
provided that there is robust

[[Page 1527]]

protection of investors against fraud.\8\ The MSRB believes that the 
proposed rule change is consistent with Section 15B(b)(2)(L)(iv) of the 
Act in that, while the proposed rule change would affect all municipal 
advisors, including small municipal advisors, any regulatory burden 
that results is necessary and appropriate in order to promote 
regulatory consistency of advertising standards.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-4(b)(2)(L)(iv).
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-4(f)(6) 
\10\ thereunder, the MSRB has designated the proposed rule change as 
one that effects a change that: (i) Does not significantly affect the 
protection of investors or the public interest; (ii) does not impose 
any significant burden on competition; and (iii) by its terms, does not 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate. A proposed rule change 
filed under Rule 19b-4(f)(6) normally does not become operative until 
30 days after the date of filing.\11\ However, Rule 19b-4(f)(6)(iii) 
\12\ permits the Commission to designate a shorter time if such action 
is consistent with the protection of investors and the public 
interest.\13\ The MSRB has requested that the Commission designate the 
proposed rule change operative upon filing,\14\ as specified in Rule 
19b-4(f)(6)(iii),\15\ which would make the proposed rule change 
operative on January 28, 2019.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ Id.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its 
intent to file a proposed rule change, along with a brief 
description and text of such proposed rule change, at least five 
business days prior to the date of filing, or such shorter time as 
designated by the Commission. The Commission has designated a 
shorter time for delivery of such written notice.
    \14\ See SR-MSRB-2018-10.
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The MSRB notes that the proposed rule change does not contain any 
amendments to the text of MSRB rules but extends the effective date of 
the amendments to Rule G-21 and new Rule G-40, which were previously 
approved by the Commission. The MSRB believes that by extending the 
effective date until after the guidance concerning the use of social 
media under MSRB advertising rules is finalized, dealers and municipal 
advisors will be afforded the time necessary to develop effective 
compliance procedures. Further, the MSRB has stated that, in light of a 
30-day operative period that would conclude after the original 
effective date of February 7, 2019, an earlier operative date would 
provide regulatory certainty to dealers and municipal advisors that the 
effective date for compliance with the amendments to Rule G-21 and new 
Rule G-40 is extended.
    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
The proposed rule change will help promote effective compliance with 
the amendments to Rule G-21 and new Rule G-40. Waiver of the 30-day 
operative period will provide certainty to dealers and municipal 
advisors that the effective date for compliance with the amendments to 
Rule G-21 and new Rule G-40 is extended in advance of February 7, 2019 
and avoid confusion in the market. Accordingly, the Commission hereby 
waives the 30-day operative delay specified in Rule 19b-4(f)(6)(iii) 
and designates the proposed rule change to be operative upon 
filing.\16\
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    \16\ For the purpose of waiving the 30-day operative delay for 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-MSRB-2019-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-MSRB-2019-01. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the MSRB. All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-MSRB-2019-01 and should be submitted on 
or before February 25, 2019.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, pursuant to delegated authority.\17\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-00802 Filed 2-1-19; 8:45 am]
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